Bankruptcy can be a fairly difficult process, both emotionally and from a legal perspective. Not only is there a lot of misinformation but a general lack of education about the topic among the public. Here are some common mistakes people making filing for bankruptcy, according to Toronto real estate lawyers:
Using Up Credit Before Filing a Bankruptcy
This is one of the most common mistakes that people make. Before filing for bankruptcy, people tend to make large purchases to acquire various items they intend to use while the bankruptcy procedures work out. Unfortunately, you’re not allowed to keep them and have to pay back for such purchases if the creditor objects to discharging the debt.
If you plan to file for bankruptcy, avoid taking on large purchases on credit cards before you file and consult commercial real estate lawyers.
Transferring Assets Out of Your Name Before Filing for Bankruptcy
Many people believe that handing off someone an asset will prevent a creditor from going after that asset now that it’s not under your name. In such cases, you’re more than likely not receiving fair market value, and it’s common for the bankruptcy court to undo such transactions. These come under fraudulent transfer.
On the contrary, you could have the asset exempted from bankruptcy, not allowing the creditor to possess it. Don’t hand off any asset to anyone else in the hopes you’ll be able to keep it.
Not Getting or Delaying the Process of Legal Help
People make all kinds of blunders in the bankruptcy process. Unfortunately, there are numerous considerations, and it’s often difficult to understand all of these aspects when you’re about to file for bankruptcy. It’s recommended that you work with legal advisory as soon as you understand that you’re in a debt problem.
The more proactive you are, the more likely the result is in your favour. You might end up working out a great deal and walk away with less financial strain depending on your case thanks to the support of civil lawyers in Toronto.
Having the best estate lawyers in Toronto will help you take care of your property and other assets when you file for bankruptcy. Work with us at Nanda and Associate Lawyers. We provide corporate lawyers, civil lawyers, commercial real estate lawyers, and family lawyers in Toronto.
Get in touch with us today or book an appointment with our professionals.
